Last Updated: 11/11/2008
Q. What is the DME’s membership structure?
A. The DME’s membership structure aims to attract a mix
of local, regional and international market participants
to the DME. In addition to the DME membership due
diligence process, all potential Members will have to be
authorized, recognized or otherwise permitted by the
DFSA to conduct the activities which it intends to
conduct while trading on the DME.
The DME has three categories of membership:
Floor, Off-Floor and Clearing Members.
Are those entities that physically occupy one or more of the 50 seats located on the DME’s trading floor
Are those entities that trade
from any location outside of DME’s trading floor.
The DME has made 50 Off-Floor Memberships available.
Current NYMEX Clearing Members
have the ability to clear DME transactions, subject
to complying with all relevant regulatory
requirements.
Trading on the DME is not
limited to Members, as Guaranteed Customers are also
permitted to trade through a Clearing Member, as
well as Seat Lessees of Floor Members.
For more details, please see the
membership section of the website.
Q. What can an entity become a Floor Member?
A. To be a Floor Member an entity needs to be established or
incorporated in the DIFC, either be DFSA Authorised (with the appropriate
category) or be otherwise permitted by the DFSA. Once this process has been
completed, an applicant must complete the DME application form that can be
obtained from DME’s Membership Department (membership@dubaimerc.com).
If an entity is not currently established in the DIFC or authorized /exempted
from authorisation, by DFSA, it can still apply for Floor Membership,
which if accepted will be granted on the condition that the firm successfully
becomes established in the DIFC and authorized/exempted by the DFSA.
Q. What can an entity become an Off-Floor Member?
A. An entity applying for
Off-Floor Membership status can be an Off-Floor Member from anywhere in the
world (except for the DME trading floor) subject to the DME having the
appropriate local permissions to allow access to the DME Direct™ system. An
application for Off-Floor Membership can be obtained by emailing DME’s
Membership Department (membership@dubaimerc.com).
Q. How can entity become a Clearing Member?
A. To be a DME Clearing Member an entity must already be a NYMEX
Clearing Member. If an entity is already a NYMEX Clearing Member it must
apply to the DFSA for Recognised Member Status.
An application for Clearing
Membership can be obtained by emailing DME’s Membership Department (membership@dubaimerc.com).
Q. Can an entity have more than one type of membership?
A. Yes. an entity can have more than one type of membership.
Q. How many seats can a Floor Member have?
A. A Floor Member can apply for up to four seats. Allocations are at
discretion of the DME Membership Committee.
Q. What regulatory issues need to be considered regarding agency/proprietary
trading for Floor and Off-Floor Members?
A. If an entity is trading on an agency/proprietary basis it must ensure
that it is authorised in the relevant jurisdiction and that it has adequate
Anti-Money Laundering Procedures. A proprietary trader who does not need to be
regulated in the relevant Tier 1 jurisdiction can still apply for recognition by
the DFSA.
Q. Can DME Clearing Members trade as well as clear DME trades?
A. Yes, they can trade and clear.
Q. Are there any minimum trading requirements?
A. There are no minimum trading requirements.
Q. Can a group affiliate trade for the account of a DME Member?
A. As long as the overseas entity has permission to act as agent it can
trade through the membership of its group entity (subject to compliance with
other legal and tax issues).
Q. Can an individual be a member?
A. Individuals are not permitted to be DME Members.
Q. Can only Members trade on the DME?
A. No, Non-Members can trade on the DME , so long as they meet the DME
Rulebook requirements to become a Guaranteed Customer
Q. How can an entity become a Guaranteed Customer?
A. A Guaranteed Customer is not a Member but rather any customer that
trades on the DME and is guaranteed by a DME Clearing Member, in compliance with
DME Rulebook requirements. In order to be a Guaranteed Customer, an entity needs
to have an account with a DME Clearing Member and meet the requirements set out
in Chapter 4 of the DME Rulebook .The DME Clearing Member can facilitate
electronic access to the DME, or else the Guaranteed Customer can trade via one
of DME’s certified
Independent Software Vendors (ISVs).
Q. What is a Seat Lessee?
A. A Floor Member with more than one seat may choose to lease one of
those seats to a non-Member. Seat Lessees are not DME Members. Seat Lessees will
require the relevant DFSA Authorisation or be otherwise permitted by the DFSA.
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